Drivers of China's high-quality development: The role of intangible factors

China's economy is shifting from high-growth to high-quality development, the core of which is promoting total factor productivity (TFP), especially with intangible factors. However, the role of intangible factors has been neglected in the literature. We investigate the drivers of TFP and identify the contribution of intangible factors in China by constructing a global nonradial Luenberger productivity indicator (GLPI) and incorporating intangible factors (knowledge, data, and technology). The intangible factors are constructed through factor analysis using 37 indicators. We find that technological innovation is the largest driver of TFP change. Second, the contribution of intangible factors is larger than that of traditional factors (labor, capital, and energy). Intangible factors such as knowledge, data, and technology increase TFP by about 4.2%, 0.32%, and 5%, respectively, while contributing to reducing carbon emissions. Third, the contribution of intangible factors in TFP growth differs across geographical locations, economic development, and factor richness.